Bitcoin, page-78

Thoughts on possible future trading effect on under lying asset.

1. If you hold bitcoin on an exchange you are possibly betting against yourself as the exchanges are the only place the shorters can borrow bitcoin from in the same way that they borrow shares from low cost brokers.They can get around the problem of the private keys by buying the right to trade the shares with financial penalty if they actually have to trade them .Whether or not exchanges located in some dodgy jurisdictions would honour the agreement is another matter . So there is now two reasons for not holding your Bitcoin on an exchange.Security from hacking and the exchange betting against you.
2. Future traders are likely to enter into contracts with miners to buy their bitcoin at a price set now. This guarantees the miners income . If bitcoin moves above the set price they make a profit .If it falls below the set price they make a loss .Will it stop the miners gaming the system by changing to other currencies with price fluctuations in order to fullfill their contracts?


It is possible that some future traders have been buying Bitcoin already in preparation for the commencement of trading